Those who own properties generally want to know the commercial value of them. This is in terms of rent, sale or purchase; for this, it is necessary to make a valuation of them.
An appraisal is nothing more than calculating the value of a property through specific methods. This ranges from the technical-scientific evaluation to the analysis of the legal documentation of real estate. It can be done through the respective Real Estate Conservator, Serviu and the corresponding Municipality.
Depending on the type of property, the appraiser must choose which method will be the most accurate to determine the real value of one’s property.
Here are some methods:
This is based on how much it costs to restore or replace the property. The method is mainly used by insurance companies in order to calculate the replacement cost. This is in case of property loss and calculates the insurance policy for your property.
This method lies in the comparison of appraised goods with others of similar characteristics, where the sale price is close to the date it is being evaluated.
Method of Profitability:
This is based on the presumed return that could be obtained from real estate within a given period according to a known monthly rent. From this, annual projected income can be established even if the maintenance of the product, lease returns and contributions are deducted. The base annual liquid income can be established for the application of capitalisation coefficients.
Translated from ‘Conoce cómo se calcula la tasa de un bien raíz‘